VA Loan Program Guidelines: The Basics

VA Loan Programs have been successful in helping many, many veterans get money for home ownership, with little or no money down. VA loan programs don’t give the veterans money, but they give insurance to lenders to get loans to veterans who may have had a lot of trouble getting a home of their own without that security.

VA loan programs, each subject to their own VA loan program guidelines, give veterans security, protection and accessibility to veteran home borrowers.

VA Loan Program Guidelines: What can you get?

VA loan programs give the OK to a variety of properties. The only rule being that the property has to be the primary residence of the veteran borrower, because VA loan programs are designed to give veterans the ability for home ownership.

The VA loan programs allow veterans to purchase the following types of properties:

• Single family homes, townhouses and condos (in approved projects)
• Homes in need of improvement in which financing can be taken for the home price and the improvement costs
• Manufactured homes on lots

The VA loan programs are also available for refinancing existing loans and for getting existing homes improved, including the costs needed to make homes more energy-efficient.

VA Loan Program Guidelines: The Basics

The basic pillar of the VA loan program guidelines is eligibility, which can be obtained through a Certificate of Eligibility. This can be obtained from the VA with the assistance of a VA approved lender, like Access National Mortgage. With this certificate, the VA loan programs then go on to finances. The financial requirements for the borrower are that they can qualify with a good credit rating. If they are offered the loan, the following VA loan program guidelines then kick in.

• Maximum guarantee of 25% of the loan—up to $104,250 (in most states); maximum VA loan amount is $417,000
• Hawaii and Alaska—max guarantee of 25%—up to $156,375, loan max of $625,500 (to accommodate for higher cost of living)
• For joint spousal eligibility—maximum loan guarantee of the lesser of 40% of the loan or $36,000 (alternative figure of $104,250 applies to some loans over 144,000)

What are the protections of the VA Loan Program Guidelines?

Another great benefit of the VA loan program is the creation of a level of buyer protection for veterans. These VA loan program guidelines open up a number of protections to veterans, including:

• Quality inspections to ensure that property meets the housing standards of HUD
• No PMI (Private Mortgage Insurance) costs, which can be a difference in hundreds of dollars in a payment
• Protections from predatory lenders and discrimination
• A warranty for new homes
• Caps on lender fees and other charges directed at borrowers
• Compensation for fixing of any structural problems in new construction

In addition to those protections, the VA also asks that lenders help borrowers when there are financial problems, including forbearance, when loan payments can’t be made. This could shield borrowers from foreclosure and offer other credit protection.

The government created the VA loan program and its guidelines in 1944 in order to give the security and flexibility of the program to veterans in order to start them on the path to home ownership. The veterans then have the protections and advantages they earned by serving their country. If qualifying veterans want to know more about these VA Loan Programs, they should consult knowledgeable VA lenders and find out all of the benefits.

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This article is provided by Access National Mortgage, based in Denver Colorado. Access National Mortgage provides progressive and superior financial solutions like a New Mexico FHA Loan Application, a Wyoming FHA Mortgage Calculator, debt consolidation loans, information about California FHA refinance benefits and whole host of other mortgage products all across the United States.

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